Let me give you a peek at my oldest SGX stock holding … I’ve been receiving dividends since I bought my first share of Suntec REIT (SGX: T82U) back in 2005. While 20 years have passed, the feeling of receiving cash in my bank account still makes me smile. There’s no better feeling than being rewarded for your patience with cash you can use right away. But, there’s something even better than receiving your regular dividend. It is that pleasant surprise when your stock declares a special dividend. This additional payout puts even more cash that you can spend whichever way you want. Question is, can you spot special dividend stocks before they declare them? We surveyed the stock market and rounded up several special dividend candidates.

Excess capital

One common reason for companies to declare special dividends is that they have excess capital. But what does “excess capital” mean?...